Congresswoman Matsui Joins Colleagues in Introducing PACE Legislation to Support State, Local Programs

FOR IMMEDIATE RELEASE
Wednesday, July 20, 2011

CONTACT: MARA LEE
(202) 225-7163

Congresswoman Matsui Joins Colleagues in Introducing PACE Legislation to Support State, Local Programs
Bill Prohibits Regulators from Halting Successful Programs that Saves Energy, Saves Consumers Money, and Creates Jobs

Today, Congresswoman Doris O. Matsui (CA-5) joined her colleagues in introducing the PACE Protection Act of 2011, which would prevent federal regulators from adopting policies that disregard established state and local Property Assessed Clean Energy (PACE) laws. The PACE program is designed to allow homeowners an opportunity to make energy efficient improvement to their homes, which would in turn help clean energy businesses sell more of their energy efficiency products, expand their manufacturing operations, and hire new workers. When enacted, homeowners see the economic benefit of reduced utility bills and added equity to their homes, while participating communities see an increase in new, high-paying jobs in the clean energy economy.

Unfortunately, on July 6th, 2010, the Federal Housing Finance Agency (FHFA) issued a statement indicating that the agency was going to shut down all PACE programs. That statement halted any action on the well thought out, planned for, but not yet implemented programs in Sacramento, and in communities across the country. The PACE Protection Act of 2011 would end this uncertainty by preventing Fannie Mae, Freddie Mac, and other federal residential and commercial mortgage lending regulators from adopting policies that contravene established PACE laws on the local and state levels.

I am pleased to be an original co-sponsor of the PACE Protection Act of 2011, Congresswoman Matsui expressed. Since July 6th, 2010, the date FHFA halted the PACE program, I have worked vigorously with my colleagues to restore the PACE program. PACE programs nationwide are critical for economic growth, achieving energy independence and reducing our emissions. In the Sacramento region, it is estimated that a PACE program would support over 700 jobs and $170 million in economic output. With prolonged unemployment in the region, a PACE program could be a critical job engine that is desperately needed. It would also further Sacramento's goal of becoming a national leader in the clean energy economy.

The bipartisan legislation was introduced by Representatives Mike Thompson (CA-1), Dan Lungren (CA-3), Nan Hayworth (NY-9), Congresswoman Matsui, and a number of their colleagues in Congress. Within 30 days of passage, FHFA, Fannie Mae, and Freddie Mac would be required to issue guidance providing that PACE assessments do not constitute a default or trigger remedies provided under their uniform security instrument for mortgage loans. The agencies and lenders would also be required to rescind the 2010 lender guidance that halted the PACE programs.

Congresswoman Matsui has been a vocal advocate of PACE programs. She has sent several letters to the White House and the FHFA, co-sponsored legislation to reinstate the program in the 111th Congress, and has had continued conversations with stakeholders at every level to try to work together to convince FHFA to make good on its promises to American homeowners. For more information about Congresswoman Matsui's work in Congress, please visit www.matsui.house.gov.

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